New Delhi, India: The Ministry of Coal has rejected reports claiming that its ₹37,500 crore scheme to promote surface coal and lignite gasification has received no applications, saying such an assessment is premature as the first application window remains open until September 7.
The Scheme for Promotion of Surface Coal/Lignite Gasification Projects was approved by the Union Cabinet on May 13, 2026. It is intended to accelerate domestic coal and lignite gasification and support the production of higher-value products such as syngas, methanol, ammonia and urea.
The ministry issued the clarification after reports suggested that the scheme had failed to attract applicants. It said the Request for Proposal was issued on July 7, followed by the launch of an online application portal. A pre-application conference was subsequently held on July 20 to address questions from prospective participants about eligibility, scheme provisions and the application process.
According to the ministry, Talcher Fertilisers Limited (TFL) and NTPC Limited have already submitted applications through the online portal. Discussions are also continuing with other potential applicants who are preparing their projects and completing their applications.
The government said large-scale gasification projects require considerable preparation, including technology assessment, feedstock planning, project economics and the development of pre-feasibility and detailed project reports. It expects more proposals to be submitted as the September 7 deadline approaches.
The scheme also uses a rolling application system. Once the first application round closes, another round will open the following day and remain available for two months, allowing companies additional time to prepare their proposals.
The ministry estimates that the initiative could attract ₹2.5 lakh crore to ₹3 lakh crore in investment across nearly 25 projects and generate around 50,000 direct and indirect jobs. It is also linked to India’s broader target of establishing 100 million tonnes of coal gasification capacity by 2030.
The ministry said participation should be assessed after the prescribed application process and subsequent rounds are completed rather than while the initial application window is still open.
Source: This article is based on an official pres release issued by the Press Information Bureau
Press Release: Press Information Bureau
